FORNEY, TX-One of Dallas' leading retail developers has picked up a 19.7-acre play in Kaufman County from a Fort Smith, AR peer. The off-market trade has closed with a $17-million loan to cover acquisition and promised build-out.
Shafer Property Co. is taking over development of land sold in February to Wally Properties Inc. for one of the retail spokes of the 550,000-sf Mustang Crossing, which is being developed by Oakridge Investments Inc. of Dallas. "They brought us an offer so Wally decided to take their gains and move on down the road to the next deal," Stephen Summers with Dallas-based Staubach Co. tells GlobeSt.com about the land flip at the junction of US Highway 80 and FM 548 in Forney.
Summers, who had been steering pad site sales for Wally Properties, had the Oklahoma City-based Sonic Corp. locked to a contract when the off-market offer came along. Shafer, who most often leans toward ground leases, followed through on the commitment with Sonic as part of the takeover, Summers explains. There are six other letters of intent that are now being negotiated, according to Summers, who sold and resold the land for Wally Properties. For previous story, click here.
Shafer's team is taking over with a tentative plan for a 70,000-sf center and seven pad sites, but the design is still being tweaked so the build-out could change slightly before ground breaks, according to Brad Donnell, senior director with Metropolitan Capital Advisors Ltd. in Dallas. Shafer secured a $17-million loan to buy the site and get a construction reserve, but the project can't go vertical until preleasing reaches 60%, Donnell explains.
Donnell says Colonial Bank in Dallas crafted a two-year package with an 85% loan-to-cost ratio at interest-only payments and a float of one-quarter point above prime for the development company, which had principal and CEO Steve Shafer, executive vice president David McNeil and vice president of leasing Corey Duhon working out the transaction with Wally Properties. Donnell says the financing closed in 30 days despite ICSC's Las Vegas confab and Memorial Day, both forcing a one-week extension but keeping the deal on track.
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